JAKARTA (TheInsiderStories) – Julo, a lending platform based in Indonesia, has extended its Series A funds to US$15 million as the scale businesses rocketed. To date the startup has pocketed funs $16 billion from global investors.
Based on TechCrunch reports, the additional $10 million funds was led by Washington-based Quona Capital, joined with East Ventures, Skystar, Provident, Gobi Partners, and Convergence. In 2018, the financial technology (FinTech) firm has secured $5 million in a Series A funding round led by Skystar Capital and East Ventures.
Joined with the two parties are Gobi Partners, Convergence Ventures, Provident Capital, Central Capital Ventura, Heyokha Brothers and other investors, said Adrianus Hitijahubessy, co-founder and CEO of Julo.
Through its eponymous Android app, Julo provides loans of about $300 to users at aggressively competitive rate of 3-5 percent per month — one of its key differentiating factors. The peer-to-peer lending platform has managed to keep its interest rate low because its credit scoring system is more efficient than those of its rivals, claimed the CEO.
Julo has disbursed about $50 million to date. Hitijahubessy said the company will use the fresh capital to expand the team and enhance its credit score system. The startup intends to focus on growing its business in Indonesia itself.
In an official statement, Ganesh Rengaswamy, co-founder and partner of Quona Capital, said, “a significant majority of Julo’ loans are used for productive purposes and driving financial inclusion in Indonesia, which is a cornerstone of Quona’ focus.”
Digital lending is becoming an increasingly crowded space in South Asian markets. In India, for instance, a growing number of digital mobile wallets including Paytm and MobiKwik have recently started to offer credits to customers.
Founded in late 2016, Julo connects institutional lenders to the under-banked and unbanked. Julo now processes more than 10,000 monthly applications with double-digit monthly disbursement growth rates since its inception.
The FinTech firm to promotes financial inclusion by providing unsecured cash loans of up to Rp10 million ($714.29) with a payback period of up to six months via a mobile app.
Hitijahubessy also notes that Indonesia is a suitable seedbed for the FinTech lending company, as the country has a large segment of the population at the base of the financial pyramid and low consumer credit liquidity equipped with information technology.
Along with Hans Sebastian and Victor Darmadi, Hitijahubessy set up Julo, a personal loan app for Android users. This allows loan applicants to apply for a small personal loan from their phones, where they are required to submit pictures of personal documents.
Successful applications can receive their loan within the next 24 hours. The startup generates revenue from a provision fee from borrowers and service fees from lenders.
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